UNIVCABLESUniversal Cables Ltd
CARE reaffirms Universal Cables’ A rating and raises the size of its rated bank facilities
- Credit rating
- Cables
Universal Cables Limited has told the exchanges that CARE Ratings Limited reaffirmed its ratings in a press release dated 12 Oct 2026. The long-term bank facilities are rated CARE A; Stable and the short-term bank facilities CARE A1. The rated amounts were enhanced: long-term facilities to ₹1,509 crore from ₹1,205 crore, short-term facilities to ₹2,375 crore from ₹1,800 crore, and long-term and short-term facilities to ₹95 crore from ₹65 crore.
CARE says the reaffirmation reflects growth in the company's revenue to ₹3,026 crore in FY26 from ₹2,414 crore in FY25, driven by higher volumes, a better product mix and momentum in extra-high voltage (EHV) cables. Profitability was 8.7% in FY26 against 7.5% in FY25, even with higher input costs.
CARE notes an order book of about ₹3,000 crore and orders in the pipeline worth ₹470 crore as of September 2026, to be executed over the next 18 to 20 months. Capital spending of about ₹720 crore over FY25 to FY27 kept the financial risk profile moderate, with net leverage of 3.6x in FY26 and an interest coverage ratio of 2.3x.
The rating draws comfort from the support of the MP Birla group, but CARE flags working capital intensive operations, raw material price swings and competition. It also flags a proposed capex of about ₹4,500 crore at Birla Furukawa Fibre Optics, in which Universal Cables holds 26.14%, whose funding is not yet finalised.
Inference
A reaffirmed rating means CARE reviewed the company and left its view unchanged. The larger rated facilities mean more bank credit lines are covered by the rating, which is relevant for lenders and for the company's borrowing capacity.
For shareholders, the points CARE names as watch items are the working capital cycle, the funding of the Birla Furukawa project and any weakening in margins; it says a sustained fall in margins below 8% could lead to a negative action. The company's order book and the progress of the group project are things investors may want to follow.
Reference: Original filing (PDF)
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